What does total life-cycle cost in asset management include?

Total life-cycle cost in asset management encompasses all costs associated with an asset's life, from acquisition through disposal. This holistic view considers not just the initial purchase price but also ongoing expenses such as maintenance, operations, training, and eventual disposal costs.

By examining the complete financial impact of an asset, organizations can make more informed decisions about purchasing, managing, and retiring assets. This comprehensive approach helps in budgeting and forecasting future costs, ensuring that all potential expenditures are taken into account throughout the asset's life. This method ultimately leads to more effective financial planning and resource allocation.

In contrast, the other options focus on limited aspects of the cost. Acquisition costs alone do not represent the full financial burden over time. Maintenance expenses, while significant, are just one part of a much larger picture. Similarly, limiting the scope to costs related to emergencies fails to account for the regular costs that contribute to the asset's overall lifecycle management.